Congress MP Shashi Tharoor expressed concern over Kerala’s start-up ecosystem, stating it needs more viable MSME start-ups, not just on paper. Sharing a news report, he highlighted that over 42,000 MSMEs had shut down in Kerala in the past nine years, resulting in significant job losses. Tharoor criticized the disparity between reported successes and reality. In response, State Industries Minister P Rajeeve dismissed the claims as unfounded, asserting that only 1,700 MSMEs closed in the past four years and that Kerala’s survival rate for MSMEs was better than the national average. Tharoor’s remarks stirred controversy within the Congress party.
Thiruvananthapuram:
Congress MP Shashi Tharoor on Sunday revised his position on industrial development in Kerala, asserting that the state requires more MSME start-ups — not merely on paper.
On ‘X’, Mr. Tharoor shared a news article from an English daily expressing his disappointment with the state’s start-up ecosystem, indicating that it is not as encouraging as claimed.
“Dismayed to see that the Kerala start-up entrepreneurship story is not what’s been reported,” he wrote.
The article he referenced stated that over 42,000 MSMEs had closed in Kerala over the last nine years, leading to the loss of jobs for at least 1,03,764 individuals.
“The only silver lining is that at least the GoK’s claims indicate good intentions. We need more MSME start-ups— and not merely on paper. Kerala must move in this direction!” his post continued.
In response, State Industries Minister P Rajeeve labeled the article as “baseless.” “I provided a comprehensive response in the Assembly on February 10. Additionally, Union Commerce and Industries Minister Piyush Goyal mentioned in Parliament that 1,700 MSMEs closed in Kerala over the past four years,” he stated.
Mr. Rajeeve further highlighted that while 30 percent of MSMEs in India cease operations within their first year, the rate in Kerala is only 15 percent.
He alleged that the report was motivated by ulterior motives, as it did not specify its sources for the statistics.
Mr. Tharoor’s recent comments regarding Kerala’s industrial growth have stirred controversy within the Congress state unit.
The Congress Working Committee member caused a stir within the party after publishing an article in an English daily that praised the industrial policy of the Pinarayi Vijayan administration in Kerala.
Interestingly, the Thiruvananthapuram MP’s post appeared just two days after the Congress leadership conducted a brainstorming session with Kerala leaders at the party headquarters in New Delhi to strategize for the Assembly elections next year.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)